Abstract: The present invention describes a heated auger assembly and method for applying powder or liquid, such as efficacious concentrations of DCD, to a substrate granule, such as granular urea. The heated auger assembly includes a mixing auger comprising a first and second end, and at least one of a heat applicator. The method of applying powder and/or liquid raw material to a substrate granule includes heating the substrate granules in a pre-heater, such as a fluidized bed, then discharging the heated substrate granules from the pre-heater into a heated auger assembly, which applies heat to the substrate granules, facilitating the coating of the substrate granules with the powder and/or liquid raw material.